An infrastructure windfall approaches

A ‘YUGE’ DOWN PAYMENT: An infrastructure windfall is in the offing, and it’s coming not thanks to the White House, but to appropriators working behind the scenes to allocate billions set aside for such projects in the recent budget deal. The end result, Pro Budget guru Sarah Ferris reports, may “exceed expectations of lawmakers who have for years demanded more dollars for roads, bridges and more, according to sources familiar with the plans.” Per Democratic demands, some of that money has to go toward surface transportation, rural water and wastewater, and rural broadband projects. But, as Sarah writes, members say “additional money will be used to fund new projects like Section 8 public housing buildings, public transportation improvements and maritime construction.”

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A DECADE IN THE MAKING: Witnesses painted a stark picture Thursday on the likelihood that most railroads will meet the initial positive train control deadline of Dec. 31. During a Senate Commerce Committee hearing, GAO Director of Physical Infrastructure Susan Fleming testified that more than half of the mandated 29 commuter railroads are at risk of not meeting the deadline or qualifying for an extension. Amtrak CEO Richard Anderson reiterated that his company's trains may not operate over certain territories if host railroads need an extension — and definitely won’t operate on lines that don't qualify for one. He also name-dropped Canadian National as a freight carrier that seems “unlikely to achieve sufficient progress” needed for an extension. (“Some of this isn’t clear yet,” he added.) A Metropolitan Transportation Authority official declined to say whether New York's railroads — Long Island Rail Road and Metro-North — will need more time for implementation.

Let me clear my throat: Canadian National spokesman Patrick Waldron told MT the railroad is on track to meet the necessary milestones to obtain an extension into 2020. “We are scheduled this year to complete installation of PTC hardware as required, including physical implementation of PTC on all track segments, construction of towers, and installation of PTC on locomotive needed,” he said. “Also wanted to note that the City of New Orleans corridor will be the first completed, and multiple subdivisions in the corridor are in revenue service demonstration.” City of New Orleans is the Amtrak long-distance route that runs over CN-owned track.

HAPPY FRIDAY: Thanks for tuning in to POLITICO’s Morning Transportation, your daily tipsheet on all things trains, planes, automobiles and ports. Lauren is at the wheel. You can send scoops, tips and song requests to lgardner@politico.com or @Gardner_LM.

LISTEN HERE: Follow MT’s playlist on Spotify. What better way to start your day than with songs (picked by us and readers) about roads, rails and runways?

STILL A WAITING GAME: While railroads have praised FRA for providing information and technical assistance on PTC issues, GAO also identified some shortcomings — namely that the guidance has been informal and reactive. Railroads say they don’t understand how the agency plans to review applications for and grant extensions. Regulators have yet to define what “other criteria” FRA may set for an extension in lieu of commuters complying with the requirement that at least one territory be in revenue service demonstration. And, of course, everyone is still wondering how exactly FRA will wield its enforcement power come Jan. 1, when some railroads inevitably don’t make it.

Early signs: It already has to some degree — Commerce Chairman John Thune noted that FRA had initiated enforcement cases against 14 railroads for either blowing self-imposed PTC hardware installation deadlines or submitting late progress reports. Your MT host scooped the former category back in January (minus one railroad, the case for which was still open as of last week). Government sources said seven railroads didn’t turn in reports on time last year and were assessed fines of up to $1,000 each: Amtrak, New Mexico Rail Runner Express, Northstar Commuter Rail, Regional Transportation District Commuter Rail, Sonoma-Marin Area Rail Transit, Sounder Commuter Rail, and Southeastern Pennsylvania Transportation Authority.

A quick aside: “What in the world is going on at the FRA?" the committee’s ranking member, Bill Nelson, asked before mentioning POLITICO’s Wednesday story about former deputy administrator Heath Hall’s side hustle during his opening statement.

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HE SAID, SHE DIDN’T SAY: At a Senate Environment and Public Works hearing Thursday on infrastructure, Sen. Chris Van Hollen (D-Md.) tried to cajole DOT Secretary Elaine Chao into saying whether President Donald Trump meant what he said when he purportedly gave a full-throated endorsement of a 25-cent-per-gallon gas tax increase in a private meeting with senators. Chao refused to say whether that was her understanding or not, citing the privilege Cabinet officials give to private conversations with the commander-in-chief.

WHAT IS EQUITY? BABY DON’T HURT ME: At the same hearing, Chao made it clear that the administration and Gateway backers are talking a different language when it comes to how New York and New Jersey want to pay for the massive project to replace the rail tunnels under the Hudson River. When Sens. Kirsten Gillibrand (D-N.Y.) and Cory Booker (D-N.J.) pressed Chao about why the administration doesn't consider federal loans as equity, she said it's simply not the way things have been done. Gillibrand and Booker disagreed, and at one point Booker cited a DOT webpage he said seemed to invalidate her position. Chao said that wasn’t her understanding, but promised to "look at it."

THE COAST GUARD IS BACK: The Coast Guard will begin soliciting shipbuilder applications for the first of three new heavy icebreakers today, our Stephanie Beasley writes. Coast Guard Commandant Adm. Paul Zukunft expressed optimism at his “State of the Coast Guard” address Thursday that this would be the start of more investment in the service, which he dubbed a “dull knife” due to years of underfunding. After the event, he said the RFP would be released to five potential vendors and that the Coast Guard expected to spend “well below $1 billion.” Consideration will be given to how to weaponize the vessel and increase its bandwidth for satellite communication, since it’s likely that autonomous ships will be on the water within the icebreaker’s life cycle, according to Zukunft.

Parting words: The 2018 address, which coincided with DHS’ 15th anniversary celebration, was Zukunft's last before he retires in June. When asked about his tenure, he said he didn't have regrets but noted that modernizing the Coast Guard’s fleet, which includes 30 ships (some of them more than 70 years old), remained among his list of “buckets that need to be filled."

SUMMERTIME AND THE MARKUPS ARE EASY: House Transportation Committee leaders are aiming for an early summer markup to get an infrastructure bill through the House before August recess, a Republican committee aide told a gathering of state transportation officials Thursday. Leadership hasn’t yet afforded them floor time, though, so anything could happen. The outlook gets darker when you turn to the Senate, where Majority Whip John Cornyn (R-Texas) expressed doubts this week about the chamber's ability to get an infrastructure package done this year.

While your calendar’s out: Thune told reporters Thursday that his goal is a bipartisan four-year FAA bill before August recess, which means look for a short-term patch to likely go through midsummer.

MYTHBUSTER: White House infrastructure adviser DJ Gribbin used his luncheon address at AASHTO’s conference to try to dispel some “myths” around the Trump administration’s infrastructure plan. For example: The idea that they’re flipping the traditional 80-20 federal-to-local match on its head. He asked for a show of hands to see how many of the state transportation officials in the room got an 80 percent match for their projects, and no hands went up. He said highway projects get an average 28 percent federal match — still higher than what they’re proposing. He also insisted they’re not proposing tolling anything; they’re just lifting restrictions around the practice.

Have at it: Gribbin also made it clear that the program will be first-come, first served, with no merit-based criteria from the federal level. “Wedon’t want to second-guess your project selection,” he said. “We’re pretty convinced that if you’re going to spend 80, 90 percent of the cost of a project that you’ve picked a good project. Congratulations!”

THE HEAT IS ON: Uber became the latest ride-hailing company to jump into the medical transportation market. The company announced Thursday it's partnered with more than 100 health care organizations looking to “combat a humdrum scourge of health care: patients failing to show up to see their doctors,” Pro eHealth’s Darius Tahir reports. Lyft and Circulation — a medical transportation-focused company — have launched similar services. But the jury is still out on whether the medical transportation market will yield the desired results. The Journal of the American Medical Association-Internal Medicine released a study last month showing little difference in the “no-show” rate between a group of patients offered free rides and another that wasn’t.

CHANGING LANES: Biometrics technology company CLEAR has hired Howard Kass to be senior vice president for corporate affairs. He was previously the vice president of regulatory affairs at American Airlines and held similar posts at US Airways and TSA.

SLICE OF PI: Tim Keating is now executive vice president of government operations for Boeing. He previously served as the company’s senior vice president of government operations (h/t POLITICO Influence).

THE AUTOBAHN:

— "Trump wants to pass out billions for rural infrastructure. But what counts as ‘rural’?" The Washington Post.

— “NYC-Area Airports Set Record for Passenger Traffic, Rank Among Worst in U.S. for On-Time Performance.” NBC 4 New York.

THE COUNTDOWN: DOT appropriations run out in 22 days. The FAA reauthorization expires in 30 days. Highway and transit policy is up for renewal in 944 days.

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About The Author : Lauren Gardner

Lauren Gardner is a reporter for POLITICO Pro Canada. Before joining POLITICO, she covered energy and environment policy at CQ Roll Call, writing about everything from the EPA's climate change rules to the oil and gas exports debate in Congress. Gardner started her career in Washington as an IRS reporter for BNA.

Gardner, a Philadelphia native, graduated from American University with degrees in journalism and international studies. Outside of the Capitol, you can find her running the trails of Northern Virginia and D.C. or rooting for the Philadelphia Eagles. She lives with her husband and their beagle mix Barkley in Alexandria.